Fintech firms powering MSMEs via digital public infra, says FM Sitharaman

Finance Minister during her visit to Indian fintech company Pine Labs lauded fintech firms’ contribution to expanding country’s Digital Public Infrastructure (DPI)
India’s fintech sector is playing a vital role in expanding the country’s digital public infrastructure (DPI) and enabling seamless, secure and inclusive financial services for merchants and micro, small and medium enterprises (MSMEs), Union finance minister Nirmala Sitharaman said on May 27.

During her visit to digital fintech firm Pine Labs’ office in Noida, the finance minister witnessed live demonstrations of innovative financial solutions. These included digital payment products built around prepaid instruments, the Account Aggregator (AA) framework, and tech-based services integrated into the Public Distribution System (PDS) and various other government welfare schemes.

The Account Aggregator (AA) framework is a key part of DPI aimed at empowering individuals and businesses to access and share their financial data securely and with consent. An Account Aggregator is a type of RBI-regulated Non-Banking Financial Company that acts as a consent manager. It does not store data but facilitates data flow between financial institutions with the user’s explicit consent.

“She acknowledged India’s Fintech firms’ contribution to expanding the country’s Digital Public Infrastructure (DPI) and in enabling seamless, secure and inclusive financial services for merchants and MSMEs,” the Finance Minister’s office said in a post on X.

The demonstrations at Pine Labs highlighted the evolving role of fintech in simplifying access to credit, digital transactions, and delivery of government entitlements, while ensuring last-mile inclusion.

India’s DPI framework is increasingly being seen as the backbone for inclusive service delivery. Fintech companies are leveraging this infrastructure to innovate across sectors, from financial inclusion and credit access to healthcare and public welfare distribution.

With a growing fintech ecosystem now directly enabling government programmes like PDS and DBT (Direct Benefit Transfer), the sector is playing a transformative role in bridging digital divides and expanding formal financial inclusion, especially for small merchants and entrepreneurs.

Empowering grassroots entrepreneurs

“Chauhan, the owner of Kuldeep Mobile House, operates three retail stores selling mobile phones and electronics in Noida. His business has seen remarkable growth, driven by the widespread adoption of digital payments across the country,” the FM’s office stated.

“Chauhan… was previously engaged in mango farming. Today, he represents the spirit of aspiring Indians who are seizing new opportunities and contributing to India’s growth story as the country moves forward towards becoming Viksit Bharat by 2047, as envisioned by Hon’ble Prime Minister Shri Narendra Modi,” the Ministry added.

Source: www.moneycontrol.com

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